This Statement of Administration Policy provides the Administration's views
on S. 2307, the Department of Transportation and Related Agencies
Appropriations Bill, FY 1999, as reported by the Senate Appropriations
Committee. Your consideration of the Administration's views would be
appreciated.

The Administration appreciates the Committee's effort to include in its
bill many of the priorities recently agreed to by the President and
Congress in the Transportation Equity Act for the 21st Century (TEA-21).
However, the allocation is simply insufficient to make the necessary
investments in programs funded by this bill. As a result, a variety of
critical programs are under-funded. The only way to achieve the
appropriate investment level is to offset discretionary spending by using
savings in other areas. The President's FY 1999 Budget proposes levels of
discretionary spending for FY 1999 that conform to the Bipartisan Budget
Agreement by making savings in mandatory and other programs available to
help finance this spending. In the Transportation Equity Act, Congress --
on a broad, bipartisan basis -- took similar action in approving funding
for surface transportation programs together with mandatory offsets. The
Administration urges the Congress to consider such mandatory proposals for
other priority discretionary programs.

The Administration is concerned that the Committee bill could seriously
disrupt air transportation safety and vital Federal Aviation Administration
(FAA) and Coast Guard modernization programs, and delay Amtrak's progress
towards operating self-sufficiency. The Senate could partially accommodate
the funding increases recommended below by adhering more closely to the
President's request for the Airport Grants program, High Speed Rail, Coast
Guard Alteration of Bridges, and other programs.

The bill also includes a number of objectionable language provisions. In
particular, the Secretary of Transportation has indicated that he would
recommend that the President veto the bill if it includes section 322,
which could severely limit the use of project labor agreements. The
Administration's concerns with the Committee bill are discussed below.

Air Transportation and Highway Safety

The Administration strongly urges the Senate to restore the $50 million
reduction to FAA Operations and eliminate the earmarks for low-priority
programs, such as subsidies for non-cost beneficial contract towers. These
funds are necessary to ensure that the FAA can hire the security personnel
and safety inspectors needed to meet the demands from increased air travel.
To protect the safety of automobile travelers adequately, we ask that the
Senate provide an additional $12 million for high priority National Highway
Traffic Safety Administration (NHTSA) programs. In addition, the
Administration urges the Senate to provide funding requested by the
President to add a second civil signal to the Global Positioning System.

FAA and Coast Guard Modernization

The Administration is concerned about language that is intended to
constrain outlays for FAA Facilities and Equipment in FY 1999. We question
whether this provision can be implemented and, if so, whether it would lead
to unintended and unfavorable programmatic effects. We look forward to
working with the Senate to address our concerns. In addition, we urge the
Senate to fund fully the President's request for the Facilities and
Equipment account. Funding at any lower level could delay National
Airspace System modernization.

The Administration objects to the virtual elimination of funding for the
Flight 2000 program. This program is a key element of the FAA's plans to
make a transition to a more efficient, user involved, satellite-based air
traffic control system to meet the air traffic needs of the next century.
The Senate is requested to provide the $100 million in the FAA Facilities
and Equipment account to deploy explosive detection systems. The
Committee's decision to provide up to $100 million for this purpose in the
Airport Grants account would preclude the FAA from deploying these systems
based on security requirements and may result in fewer systems being
deployed.

The Administration opposes the Committee's reduction of $57 million to the
President's request of $443 million for Coast Guard capital investments.
These capital projects provide long-term operating savings and are
necessary to ensure that the Coast Guard has the necessary infrastructure
to fulfill its maritime safety, drug interdiction, environmental
protection, and national security goals. In addition, the Administration
urges the Senate to fund fully the President's request for $8.5 million for
the Nationwide Differential Global Positioning System.

Amtrak

As this bill moves forward, we urge Congress to fund fully the President's
request for Amtrak so that it can carry through on the bipartisan,
five-year reform plan envisioned by the Amtrak Reform and Accountability
Act of 1997. Amtrak is an essential component of the nation's inter-city
transportation system.

Access-to-Jobs

The Administration requests that the Senate provide an additional $50
million to fully fund the President's request of $100 million for the
Access-to-Jobs program. This program is a critical component of the
Administration's welfare reform effort. The additional resources are
essential to helping more individuals in communities around the country
make a successful transition from welfare to work.

Civil Rights and Office of the Secretary

The Administration strongly urges the Senate to restore the 20-percent
reduction made by the Committee to the funding request for the Office of
Civil Rights. This reduction would significantly hamper the Department's
ability to enforce laws that prohibit discrimination in Federally operated
or assisted transportation programs. We also urge the Senate to provide
the President's requested $62 million for the Office of the Secretary and
to delete the Committee's recommended new account structure and limitation
on political appointees. These changes are necessary to avoid a
reduction-in-force and to allow the Secretary to manage the department
effectively.

Earmarks

The Committee has earmarked almost 400 transit projects, as well as many
airport, Intelligent Transportation System (ITS) and rail, and
infrastructure credit projects. Consistent with our objections to TEA-21,
the Administration believes that projects should be funded based upon their
merit and that funds should not be directed to low-priority projects that
cannot meet established selection criteria.

Language Provisions

Section 322 would preclude the Department of Transportation from using
project labor agreements (PLAs), which are a contract mechanism to achieve
efficiencies in construction projects. Furthermore, the provision is
ambiguous, making its full impact difficult to assess and raising questions
as to its applicability to a host of laws and regulations affecting
workers. As noted above, the Secretary of Transportation would recommend
that the President veto this bill if it includes section 322.

The Administration strongly opposes section 342 of the bill, which would
allow helicopters to operate and land on Federally-owned lands in Alaska,
including wilderness areas. This would be harmful to species and habitat
and disrupt Congress' carefully crafted balance on this issue in the Alaska
National Interest Land Conservation Act (ANILCA). Under ANILCA, helicopter
landings are permitted for emergency reasons and, on a case-by-case basis,
for non-emergency use in non-wilderness areas. The Secretaries of the
Interior and Agriculture have previously recommended that bills containing
similar provisions be vetoed.

The Administration requests that the Senate delete the provisions in both
the Coast Guard and FAA operating expenses appropriations language that
would prohibit the Coast Guard and the FAA from evaluating options for
collecting fees for their services. User fees may be a critical means in
the future for ensuring that the Coast Guard and the FAA have adequate
resources to meet their operating and capital needs without significantly
reducing other vital transportation programs.

The Administration requests that the Senate delete the provision allowing
states to establish separate standards for licensing drivers on commercial
vehicles that do not cross state boundaries. This would seriously
undermine the single-license concept of the national commercial driver's
license which prevents drivers from spreading violations across multiple
licenses held in several States.